Wardell Company purchased a mainframe on January 1, 2016, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $400. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2. Prepare the year-end journal entry for depreciation in 2018. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method.

Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record depreciation expense.

Note: Enter debits before credits.

Depreciation expense

Event	General Journal	Debit	Credit
1	Depreciation expense
	Accumulated depreciationcomputer
	No journal entry required
	No journal entry required
	No journal entry required
	No journal entry required

Prepare the year-end journal entry for depreciation in 2018. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record depreciation expense.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1	Depreciation expense
	Accumulated depreciationcomputer
	No journal entry required
	No journal entry required
	No journal entry required
	No journal entry required